CMA Final · Cost and Management Audit · Basics of Management Audit
Which of the following is a typical objective of a management audit rather than of a statutory financial audit?
Identifying areas where managerial performance and resource utilisation can be improved is a typical management audit objective. The other options, true and fair opinion, statutory registers and annual return compliance, belong to statutory or financial audit and compliance work rather than the performance-improvement focus of management audit.
- AExpressing an opinion on whether accounts give a true and fair view
- BIdentifying areas where managerial performance and resource utilisation can be improvedCorrect
- CConfirming that the statutory registers are properly maintained
- DReporting on compliance with the filing of annual returns
Explanation
A management audit seeks to identify weaknesses and improvement opportunities in managerial performance and resource use. Opinion on true and fair view, statutory registers and annual return filing are compliance or financial audit objectives.
Did you get it right without looking?
One question tells you little. A timed set on Basics of Management Audit shows your real accuracy, how long you take and where you lose marks.
More Basics of Management Audit questions
- Which statement best distinguishes management audit from a statutory financial audit?
- In management audit, the term 'management' being evaluated primarily refers to which of the following?
- Which of the following is generally considered a limitation of management audit?
- Which of the following best describes the primary focus of a management audit as distinct from a financial audit?
- Which statement best distinguishes a management audit from a financial audit?
- A management auditor reviewing a manufacturing company finds that a plant meets its production targets and complies with all policies, but t…